TikTok Owner Partners With State Media Firm To Offer Blockchain, AI Services In China
A subsidiary of Beijing-based internet company ByteDance has formed a joint venture with state-run media firm Shanghai Dongfang Newspaper Co Ltd, according to Reuters.
The new company called Pengpai Audiovisual Technology (Jinan) Co Ltd will offer services related to artificial intelligence, blockchain technology, and software development, Reuters said, citing the company's filing.
The ByteDance subsidiary Beijing Liangzi Yuedong Technology Co Ltd will own 49% of the new venture, with Dongfang controlling the majority 51% stake, as reported by Reuters.
"The joint venture will focus on partnership in the digital rights of short videos," a ByteDance spokeswoman told Reuters.
Pengpai was established on December 10 in the Shandong province of China with a registered capital of $1.4 million, according to Reuters.
Why It Matters
The new venture, in partnership with a state-run company, comes at a time when ByteDance's video-sharing app TikTok is facing increased scrutiny in the U.S.
The social media app is being investigated by the U.S. Army, in response to the concerns raised by New York senator Chuck Schumer.
Earlier this month, a California college student filed a lawsuit against the company for allegedly sending her data to China.
ByteDance has denied the allegations of spying, saying that its data centers are located outside of China, and not subject to the country's law.
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